MIGA's mission is to support economic growth, reduce poverty, and improve people's lives by mobilizing cross-border private investment into developing countries. In order to achieve this, the Agency needs a clear understanding of the development outcomes of the projects it supports. We collect a set of common indicators from clients and put in place a development outcome results system known as the Development Effectiveness Indicator System (DEIS).
In FY21, MIGA issued $5.2 billion of new guarantees in support of 40 projects across the globe, and 85% of these projects addressed one or more of its priority areas (climate change, low-income countries and fragile and conflict-affected situations) under the FY21-FY23 strategy. While the Agency was primarily focused on the immediate COVID-19 response during the fiscal year, it continued to facilitate foreign direct investment (FDI) into developing countries by supporting several highly impactful projects. Here are some highlights of the expected development results in the host countries.
Expected Development Results (FY21 New Business)
MIGA’s aggregate expected development results since FY15 include almost 58 million people gaining access to power. With an additional 54.8 thousand gigawatt-hours of additional power generation capacity expected annually, host countries have a better chance of supporting manufacturing and creating productive economic activity that can help end poverty. These projects are also expected to help create an estimated 127.6 thousand direct and many more indirect jobs, while preventing the emission of 10.8 million metric tons of greenhouse gases annually. Economic activity is also supported by MIGA-guaranteed projects through the expected $1.5 billion in locally procured goods annually and the $18.1 billion in finance expected to be enabled for small and medium enterprises (SMEs). Projects supported by MIGA since FY15 are leading to better access to modern health care and are expected to enable approximately 21.5 million patient consultations. Government resources are also being improved with an expected $4.0 billion annually in local taxes/fees generated from MIGA-supported projects.
Expected Development Results (FY15-FY21)
In response to the COVID-19 pandemic, MIGA launched its $6.5 billion fast-track facility in April 2020 to support private sector investors and lenders in emerging markets and developing economies. During FY20, the Agency issued $2.1 billion in guarantees in support of 18 projects in low-income and middle-income countries as part of the fast-track facility.
Of the 47 projects supported by MIGA during FY20, 70% addressed at least one of the three strategic priority areas, namely, Climate Finance, Low-Income (IDA) Countries, and Fragile and Conflict-Affected Situations (FCS).
During FY20, MIGA supported 6 projects in Latin America and the Caribbean, and issued guarantees for a total of $1.5 billion. In Sub-Saharan Africa (SSA), the Agency supported 22 projects by issuing guarantees for $1.3 billion, nearly all of which supported one or more strategic priority areas. New guarantees issued in Europe and Central Asia amounted to $499 million and the majority of them were capital optimization guarantees that were issued under Pillar 2B of MIGA's COVID-19 fast-track facility. The Agency supported 4 projects in FY20 in East Asia and the Pacific and South Asia, issuing guarantees for $532.3 million. MIGA continued to expand on its climate finance commitments in the Middle East and North Africa, and supported 7 renewable energy projects, issuing guarantees for a total of $168 million.